January 30, 2004

By: Yannik Allan
Website: http://www.1st-in-cell-phones.com

NPD intelect reports almost half of cell phones sold at retail are internet-ready

According to leading marketing information provider NPD INTELECT Market Tracking, the Internet-ready cellular phone has managed to take off at an astounding rate at retail in the past year. Forty-eight percent of cell phones purchased at retail during the second quarter of 2000 were Internet-ready cell phones, NPD INTELECT reports. This is a tenfold increase over the same period last year. Pricing of Web-enabled phones has stabilized, with consumers paying a premium (about one third over conventional cell phones) for these phones that allow data and voice communication. NPD INTELECT reports the average selling price for Internet-ready cell phones in second quarter of 2000 was $164, versus $211 a year ago.

In addition to Web capability, a host of new features are driving sales of Internet-ready cell phones. These include improved display and lighter weight, contributing to a more attractive consumer proposition.

The recent introduction and heavy promotion of wireless Web access by several major service providers appears to have boosted demand for new handsets. AT&T, Verizon, Sprint PCS, Nextel, and Voicestream, among others, offer wireless Web services. While actual use of these services may lag purchases of Web-enabled phones, demand should increase, as content becomes more robust.

Author Notes:

Yannik Allan contributes and publishes news editorial to http://www.1st-in-cell-phones.com.  A cellular phone industry resource featuring articles, comparisons and reviews of cellular phone and service plans.